Company Profile
Bajaj Housing Finance Ltd, part of the Bajaj Group, has been a registered Housing Finance Company (HFC) with the National Housing Bank (NHB) since 2015. The company has been active in mortgage financing since FY18, offering a range of customized financial solutions to both individuals and businesses. These solutions include home loans, loans against property, lease rental discounting, and developer financing.
As of June 30, 2024, the company catered to 3,23,881 customers, with home loan clients making up 83.2%. By March 31, 2024, its assets under management (AUM) reached Rs 913,704 million, achieving a compound annual growth rate (CAGR) of 30.9% between FY22 and FY24.
According to the CRISIL MI&A Report, the company has achieved several milestones as of June 30, 2024:
- It is the largest non-deposit-taking HFC in India (based on AUM) within just seven years of entering the mortgage space.
- It ranks as the second-largest HFC in India.
- It is the second most profitable HFC, delivering strong returns on average assets and equity during Fiscal 2024 and for the quarter ending June 30, 2024.
- It is one of the fastest-growing HFCs/NBFCs-UL, recording impressive AUM growth from FY22 to FY24.
- Among large HFCs, it has maintained the lowest gross non-performing asset (GNPA) ratio at 0.28% and net non-performing asset (NNPA) ratio at 0.11%.
- It holds the highest credit ratings in India for both long-term and short-term borrowing programs.
As of June 30, 2024, Bajaj Housing Finance Ltd operated 215 branches across 174 locations in 20 states and three union territories, supported by six centralized retail underwriting hubs and seven loan management hubs.
Additionally, the company has partnered with various insurance providers to offer bundled insurance products to its clients. As a registered corporate agent with the Insurance Regulatory and Development Authority of India (IRDAI), it offers a wide range of life, general, and health insurance products.
Objects of the Issue
This IPO consists of both a fresh issue and an offer for sale. It’s crucial to highlight that the company will not receive any benefits from the offer for sale portion. The funds raised through the fresh issue are intended to bolster the company's capital base, facilitating future growth in its lending activities.
Promoter Holding
The promoters of the company include Bajaj Finance Ltd and Bajaj Finserv Ltd. Prior to the IPO, they collectively hold 100% of the company's shares.
Summary of Financial Information:
| Period Ended | 30-Jun-24 | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
|---|---|---|---|---|
| Assets | 88,538.83 | 81,827.09 | 64,654.14 | 48,527.08 |
| Revenue | 2,208.73 | 7,617.71 | 5,665.44 | 3,767.13 |
| Profit After Tax | 482.61 | 1,731.22 | 1,257.80 | 709.62 |
| Net Worth | 14,719.91 | 12,233.50 | 10,503.19 | 6,741.36 |
| Reserves and Surplus | 4,252.83 | 5,520.81 | 3,791.03 | 1,858.03 |
| Total Borrowing | 73,347.06 | 69,129.32 | 53,745.39 | 41,492.32 |
Comparison with Listed Peers:
| Company Name | P/E | P/B | RoE (%) | RoA (%) |
|---|---|---|---|---|
| Bajaj Housing Finance Ltd | 29 | 3.2 | 14 | 2 |
| LIC Housing Finance Ltd | 8 | 1.19 | 16 | 2 |
| PNB Housing Finance Ltd | 17 | 1.75 | 12 | 2 |
| Can Fin Homes Ltd | 15 | 2.6 | 19 | 2 |
| Aadhar Housing Finance Ltd | 25 | 2.45 | 19 | 4 |
| Aavas Financiers Ltd | 28 | 3.67 | 14 | 3 |
| Aptus Value Housing Finance India Ltd | 25 | 4.09 | 17 | 8 |
| Home First Finance Company India Ltd | 32 | 4.82 | 16 | 4 |
Key details of the IPO:
- IPO Dates: 9 Sep to 11 Sep, 2024
- Price Band: Rs. 66 to Rs. 70 per share
- Lot Size: 214 shares
- Listing Date: 16 Sep, 2024
- Total Issue size: Rs. 6560 Crores (Fresh Issue: Rs. 3560 Cr.)
- Retail Quota: 35%
- GMP: 71% ( Only For Informational Purposes )
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
